Bhubaneswar: Shares of Aditya Birla Group’s metal flagship Hindalco Industries Ltd were in focus on Tuesday, a day after it received a vesting order for Meenakshi Coal Mine allocation in Odisha from the Ministry of Coal.
On Monday, shares of Hindalco had ended at Rs 604.95, down by Rs 12.15, or 1.97%, on the BSE.
This development follows the successful signing of the Coal Mine Development and Production Agreement (CMDPA) on November 22, 2024, marking a pivotal step in the company’s journey towards resource securitisation, energy efficiency and sustainable growth.
Meenakshi coal mine is a fully explored block with a peak rated capacity (PRC) of 12 million tonnes per annum and 285.23 million tonnes of geological reserves. This allocation aligns with Hindalco’s strategy to reduce operating costs and boost energy self-sufficiency.
According to the regulatory filing, Hindalco expects to commence coal production in the calendar year 2028, subject to receipt of regulatory clearances and requisite approvals. “With a favourable coal-to-waste stripping ratio of less than 1, the G12 grade mine is poised to be a cost-effective and sustainable energy source for the company’s operations, making the company self-reliant in coal production,” it said.
Hindalco added that the project is expected to create approximately 16,000 direct and indirect employment opportunities.
